Another budget, another ritualistic document

... Financial Express a { text-decoration: none } a:hover { font-weight: bold; } a:visited { text-decoration: none; color: #003366 } VOL NO REGD NO DA 1589 Wednesday, March 29, 2006 HEADLINE POLITICS & POLICIES METRO & COUNTRY VIEWS & REVIEWS EDITORIAL LETTER TO EDITOR COMPANY & FINANCE BUSINESS & FINANCE TRADE/ECONOMY LEISURE & ENTERTAINMENT MARKET & COMMODITIES SPORTS WORLD FE Specials FE Education Urban Property Monthly Roundup Saturday Feature Asia/South Asia Feature 13th SAARC SUMMIT DHAKA-2005 WOMEN & ECONOMY 57th Republic Day of India US TRADE SHOW Archive Site Search HOME EDITORIAL Another budget, another ritualistic document Enayet Rasul 3/29/2006 EVERY year since the independence of the country, a national budget indicating the revenue receipts and expenditures of the government was declared.

The declaration of another such budget is only some months away.

Thus, it is not irrelevant to start discussing the budget which, every time, creates a great deal of interest but fails in its purpose as the powerful macro economic instrument to stimulate the economy.

A budget must not only be about receipts and expenditures of the government.

It can be a powerful macro economic tool in the hands of the government in setting a pace to economic activities.

Government through its fiscal policies in the budget can seek to achieve a desired orientation for the economy and then further buttress the same with the adoption of appropriate ...

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For a start, real GDP growth is targeted to fall this year to 5.5%, and 5% in 2007.

And much of that growth comes off the back of hydrocarbon industries: if world oil prices fall, GDP growth will slide back even more.

In any event, says Darren Middleditch, a senior economist who specialises in eastern Europe at D&B Country Risk Services, Russia won’t benefit fully from high world oil prices “because it can’t get the stuff out of the ground fast enough.

One of the reasons for that is that foreign companies are still quite reluctant to invest because of political risk.” Yet the economy is in a healthier shape than in the late 1990s when...

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